A THEORY OF ENDOGENOUS FERTILITY WITH OCCUPATIONAL CHOICE

Dilip Mookherjee, Silvia Prina () and Debraj Ray
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Silvia Prina: CaseWestern Reserve University and

No WP2010-036, Boston University - Department of Economics - Working Papers Series from Boston University - Department of Economics

Abstract: This paper introduces endogenous fertility into a model of occupational choice, and studies its steady states. Three main results are obtained. First, despite the presence of both income and substitution e ects in fertility choice, general equilibrium e ects operating via endogenous wages in steady state yield a negative correlation between parental wages and fertility. (b) Occupational mobility arises in steady state, generated by di erential fertility across various occupational categories. Unlike the mobility created by stochastic shocks, such occupational drift has a predictable direction depending on the income-fertility relationship. (c) Steady states are locally determinate, permitting the analysis of the long-run e ects of altering child-care or education costs, child labor regulations, redistributive tax-transfer policies and family planning subsidies.

Pages: 35 pages
Date: 2010-01
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Persistent link: https://EconPapers.repec.org/RePEc:bos:wpaper:wp2010-036

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